Updated 13.32, 13.44, 14.00, 14.05, 14.09Chancellor Rachel Reeves has announced a four-year funding settlement for Transport for London as part of her Spending Review. There will be £2.2 billion between 2026-27 and 2029-30 for Transport for London's capital renewals programme. £25.3 billion is included in her transport budgets to continue construction of HS2 from Birmingham Curzon Street to London Euston. She says a quarter of the Transpennine Route will have been electrified this year, and that funding of £3.5 billion will be available. She also promised to ‘take forward’ work on Northern Powerhouse Rail in the coming weeks. There will be a further £2.5 billion for East West Rail, to ‘unlock the potential’ of the Oxford-Cambridge corridor. There be funding for Midlands Rail Hub West, and £445 million will be invested in Welsh railways, including upgrades at Cardiff Central. The rail projects in this Spending Review are in addition to £15.6 billion already announced for local transport in the city regions which were announced on 4 June, plus £2.3 billion for transport improvements in other counties outside London, including bus lanes, cycleways and congestion measures. Reactions are coming in. London Transport Commissioner Andy Lord said: ‘We are grateful that the Government has agreed a much-needed multi-year capital funding agreement similar to those in place with Network Rail and National Highways. ‘This settlement will ensure that London’s transport network can continue to support new homes, jobs and economic growth in the capital. And it will boost jobs, skills, growth and opportunities across the UK. It will allow us to deliver a programme of sustainable investment, aligning our suppliers around a longer-term programme. And it will mean that we can complete the introduction of new trains on the Piccadilly line and DLR and new signalling on 40 per cent of the Tube, can procure a new tram fleet, progress discussions on new Bakerloo line trains and can get to work on renewing some of London’s critical roads, tunnels and flyovers. ‘Our supply chain supports growth and opportunities right across the UK, with around two thirds of our suppliers based outside London, and nearly a third of our overall spend and resulting economic benefit felt outside of our city. We are pleased that, together with our suppliers, we can move on from the short-term and stop-start nature of funding over recent years.’ Railway Industry Association chief executive Darren Caplan said: ‘The Railway Industry Association welcomes the support Chancellor Rachel Reeves announced for UK rail in the Spending Review, and the recognition that the railways are key to delivering economic growth. ‘This support includes the next phases of the Transpennine Route Upgrade, East West Rail, and Northern Powerhouse Rail, as well as new funding for the Midlands Rail Hub and for Welsh rail infrastructure. ‘The Treasury's plans to reassess the Treasury’s Green Book investment framework should also be applauded, as social, environmental and regional value are all central to what rail delivers. ‘This Spending Review follows the announcement last week of £15 billion of funding for local transport in city regions, including metro and tram networks, whether the Midlands, Sheffield, Greater Manchester, Yorkshire, Tees Valley, Newcastle, or West of England. Rail businesses from every part of the UK will want to be involved with delivering those schemes, as the Government and devolved bodies take them forward. ‘Finally, we also welcome the Chancellor’s focus on skills and training as well as her ambition to leverage private investment into transport to help alleviate capacity and connectivity constraints. We look forward to more details on how this will be delivered, when the Government’s Infrastructure and Industrial strategies are published later in June.’ AECOM’s chief executive for Europe and India Richard Whitehead said: ‘This long-term funding cements the government’s pledge to accelerate the delivery of essential infrastructure and, in turn, unlock growth opportunities across the UK. ‘The additional capital expenditure on infrastructure – including nationally significant schemes such as East West Rail – is welcome, along with the £15.6 billion for city region local transport projects. This should promote more balanced regional development and ensure strategic investments benefit all parts of the country, driving growth and innovation.’ Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

The RMT is calling for all outstanding open access applications to be rejected, and for the existing operators to be nationalised. The call comes in response to new trading figures from FirstGroup, which owns Hull Trains and Lumo and is also due to launch open access services on two new routes from London to Stirling and South Wales over the next couple of years. The Office of Rail and Road is considering a number of other applications at the moment, including more from FirstGroup as well as others from Alstom, Arriva and Virgin Trains. The government’s public response has been mixed. The Department for Transport has declined to support most current applications and Network Rail has voiced concerns about capacity, but the Prime Minister said ‘Open access operators have huge potential to offer passengers more choice’ in answer to a question in the House of Commons on 22 May. First, which is due to lose its final two former franchises soon, has reported that its open access revenues were up from £99.8 million in 2023-4 to £106.4 million in the last financial year, with an operating profit of £34.1 million. RMT general secretary Eddie Dempsey said: ‘FirstGroup is cashing in off the back of a broken system where they are allowed to cherry-pick profitable routes, draining revenue from public services, and dodging proper infrastructure costs. ‘This is continued privatisation by the back door. It undermines Labour’s commitment to a publicly owned railway and keeps the gravy train running for shareholders. ‘It is time to close the loopholes, stop the profiteering, and bring all rail services into a single, publicly owned, integrated system that puts passengers and workers before private profit. ‘We want an immediate moratorium on new open access approvals and a phased integration of existing open access services into the publicly owned Great British Railways.’ FirstGroup has denied that it does not pay a full share of infrastructure costs, and says its open access services encourage more people to travel by train. However, a recent report commissioned by state operator LNER was said to have concluded that open access operators on the East Coast Main Line would abstract more than £1 billion in revenue from LNER over the next ten years. Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

Eurostar is planning three new routes, two of them from London. The British services will connect the UK capital with Frankfurt and Geneva, while the third will link Amsterdam and Brussels with Geneva. Their introduction depends on a new fleet of up to 50 trains by the early 2030s, which will need an investment of around €2 billion. The news of Eurostar’s expansion comes as other operators compete for paths on HS1 from London, although the Office of Rail and Road says the capacity of Temple Mills depot is limited. Unless it is enlarged or there is a new depot, only one further operator can be accommodated. Eurostar says its passenger numbers rose to more than 19.5 million in 2024, which was an increase of 5 per cent. Revenue was up by 2 per cent, to €2.0 billion (£1.7 billion), although its bank debt was €650 million at the end of last year. Its busiest route is still London-Paris, which carried more than 280,000 passengers last year. Eurostar CEO Gwendoline Cazenave said: ‘We’re seeing strong demand for train travel across Europe, with customers wanting to go further by rail than ever before and enjoy the unique experience we provide. Despite the challenging economic climate, Eurostar is growing and has bold ambitions for the future. ‘Our new fleet will make new destinations for customers a reality – notably direct trains between London and Germany, and between London and Switzerland for the first time. A new golden age of international sustainable travel is here.’ Alain Krakovitch is president of the Eurostar Groupand director of TGV-INTERCITÉS at Eurostar’s major shareholder, SNCF Voyageurs. He added: ‘2024 is an exceptional year, crowned by the successes of the Olympic Games.  Eurostar is in good shape to serve 30 million passengers and the ambition to develop our European services remains strong.’ British transport secretary Heidi Alexander has welcomed the development, saying: ‘Last month I signed a landmark agreement to deliver a direct rail link between London and Switzerland, paving the way for direct commercial services. Today’s announcement by Eurostar shows that the government’s plan for change is rapidly strengthening the links between major cities in countries across Europe, creating more opportunities to travel, work, and socialise.’ Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

A thinktank says its calculations show that the north of England received £140 billion less for transport projects than London between 2009-10 and 2022-23, which would have been enough to build seven Elizabeth Lines. An analysis of Treasury figures by the Institute for Public Policy Research is based on the equivalent amounts for each person in the population. While transport investment in London was £1,183 for each citizen, in the North East it was just £430, although this figure would not have necessarily included more recent investment in a new fleet of trains for Tyne & Wear Metro and the reopening of the Ashington line. Yorkshire and Humber was only slightly better off, with £441, and the North West spent £540 a head. The average in the North was £486. These calculations have been published today in the wake of last week’s Treasury announcement of £15.6 billion for public transport projects in city regions outside London over the next five years, and two days before the Spending Review. Almost exactly two thirds of the total of £15.6 billion was for city regions in the North, at £10.5 billion. The individual Mayors will decide which projects in their regions should receive investment. IPPR, IPPR North and Lord Jim O’Neill, who chairs the Northern Powerhouse Partnership and is a former Treasury minister, have published ‘Great Northern Rail’, which is their plan to improve rail services in the North. Their call follows an earlier announcement by former minister Lord Blunkett, who unveiled his own proposals for railways in Yorkshire on 16 May. These improvements would need a total of £16.4 billion between now and 2040, plus a further £2.5 billion for trams in Leeds, Bradford and Sheffield. Lord Jim O’Neill said: ‘Good governance requires the guts to take a long-term approach, not just quick fixes. So the Chancellor is right in her focus on the UK’s long-standing supply-side weaknesses – namely our woeful productivity and weak private and public investment. ‘Backing major infrastructure is the right call, and this Spending Review is the right time for the Chancellor to place a big bet on northern growth and begin to close this investment chasm. But it’s going to take more than commitments alone – she'll need to set out a transparent framework for delivery.’ Marcus Johns is senior research fellow at IPPR North. He added: ’Today’s figures are concrete proof that promises made to the North over the last decade were hollow. It was a decade of deceit. ‘We are 124 years on from the end of Queen Victoria’s reign – yet the North is still running on infrastructure built during her reign – while our transport chasm widens. ‘This isn’t London bashing - Londoners absolutely deserve investment. But £1,182 per person for London and £486 for northerners? The numbers don’t lie – this isn’t right. This government have begun to restore fairness with their big bet on transport cash for city leaders. They should continue on this journey to close this investment gap in the Spending Review and decades ahead.’ The Chancellor is due to report the outcome of the 2025 Spending Review in two days from now, and she has already predicted that there will be more spending on railways. Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

FirstGroup has applied for an open access licence to run trains between London and Hereford. Its application to the Office of Rail and Road sets out proposals for two return journeys a day (with one on Sundays) between London Paddington and Hereford, calling at Bristol Parkway and Severn Tunnel Junction as well as at Cwmbran, Pontypool & New Inn and Abergavenny. The services would be branded Lumo. First already possesses open access licences for new services from London to Stirling and Carmarthen, but other applications, including some from First, are still outstanding. Although the Prime Minister has praised open access in principle, the Department for Transport has declined to support most of these applications, with the exception of a bid from Alstom to run between London and Wrexham, but the Wrexham proposals have been greeted with caution by Network Rail, which is concerned about the presence of level crossings on the route and also limited capacity nearer London. A consultation period over the Hereford plan will now follow, as well as discussions with Network Rail to secure the required approvals. First said the new service would operate in conjunction with First’s London-Carmarthen service, which is due to start in December 2027, and First is hoping that its Hereford service could begin at the same time. First placed an order for 14 trains from Hitachi worth £500 million in December, and it has an option for a second order. FirstGroup’s chief executive officer Graham Sutherland said: ‘We have extensive experience of running open access rail operations and we want to bring our successful Lumo service to this new route that connects Hereford, South Wales and London. Open access operators deliver trains to under-served routes, offering passengers choice at competitive fares. Passenger surveys routinely report very high satisfaction levels, and open access operators are giving customers new travel options and driving demand, paying their own way without public funding. We will be working closely with stakeholders as we build our application and our case for this new service.’ First is losing all its former franchise contracts between now and 2027. South Western Railway was renationalised on 25 May this year, and Avanti West Coast and Great Western Railway will also return to public ownership in due course. Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

The chancellor Rachel Reeves has confirmed that £15.6 billion is to be invested in public transport for urban areas outside London over the next five years. She has also indicated that more rail investment is set to be announced next week. The plans announced today include a new Manchester Metrolink line to Stockport, a Midlands Metro extension connecting Birmingham City Centre to a new sports quarter, work starting on the new mass transit system connecting Bradford and Leeds via Kirklees, Calderdale, Wakefield and Pudsey, renewals of the South Yorkshire tram network by replacing the fleet with modern trams, an extension of Tyne & Wear Metro to connect Washington with Newcastle and Sunderland, upgraded railways near Bristol to improve the service from the new Brabazon estate to the city centre, as well as funding to pay for the development of a mass transit system in the Greater Bristol area including Bath, a new mass transit system to connect Derby and Nottingham and a platform extension at Middlesborough. The Chancellor, who was speaking at the Mellor Bus Factory in Rochdale, said: ‘For the first time, the Treasury takes account of the benefits, and not just the costs, of investment. ‘Together the fiscal rules mean that, unlike our predecessors, we will not be balancing the books by cutting investment. ‘Next week, I will set out our plans in full – for England, Scotland, Wales and Northern Ireland; in housing, in energy, in roads and in rail. But today, I want to tell you about just one part of our plan – renewing our transport systems in England’s largest mayoral regions, including here in Greater Manchester and across the North and the Midlands. ‘Because connectivity is an absolutely critical factor in unlocking the potential of towns and cities outside of London. One of the areas in which previous governments have promised most, but delivered least. And that will now change.’ Transport for the North chief executive Martin Tugwell said: ‘Better connectivity is fundamental to unlocking sustainable and inclusive growth. If people are unable to move around easily because of poor transport options it means the whole local economy is held back. ‘These vital investments will help to improve the transport connections for our city regions. TfN is committed to working with our Mayors and political leaders in the North to help deliver these schemes. ‘We are also pleased to hear that the Chancellor has listened to the advice from TfN and others in the North to reform the Treasury’s "Green Book", to drive more investment in all regions. We will continue to work closely to inform that review with the North’s data and evidence.’ Mott MacDonald’s transport market lead for UK & Europe Thomas Knight said: ‘The overall commitment of an additional £15.6 billion for trams, trains and buses is a bold and welcome step that will help unlock economic potential, improve connectivity and support communities across the country.’ The chief executive of the Railway Industry Assocation Darren Caplan said: ‘RIA and our members welcome all investment in rail infrastructure, which benefits not just the industry but also supports increased economic growth and connectivity in every nation and region of the UK more widely, supporting jobs, GVA and Treasury revenues. ‘So we welcome the commitment by Chancellor Rachel Reeves today to change funding rules to ensure the Government “gives every region a fair hearing when it comes to investments”, as this benefits both the rail network and railway suppliers who build, renew and enhance rail – whether track or train related – all around the country. ‘RIA and our members have been working closely with Combined Authorities, mayors, and regional transport bodies on their regional rail plans in recent years, and will of course continue to do so.’ The Campaign for Better Transport has also welcomed today’s announcement. The charity’s chief executive Ben Plowden said: ‘It’s great to see the Government investing in the local transport infrastructure that will tangibly improve the lives of millions across our city regions and particularly good to see trams being prioritised in several areas. ‘Fast, frequent and reliable public transport is essential to unlocking opportunity and driving inclusive economic growth. ‘We hope to see similar commitments to revenue funding in next week’s Spending Review, alongside support for local authorities to plan, deliver and run the high-quality transport services their communities need.’ Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

Plans to improve public transport in city regions outside London with a five-year budget of £15.6 billion are expected to be announced by chancellor Rachel Reeves during a speech in Manchester today. The schemes are understood to include a long-called for extension of the Metrolink tram network to Stockport and more tram stops in Bury, Oldham and central Manchester, using funding worth £2.5 billion. West Yorkshire gets £2.1 billion to start work on a new tram system connecting Leeds and Bradford, there is £1.6 billion for Merseyside to improve airport links, £1.5 billion for South Yorkshire to renew the existing tram network around Sheffield, £1.8 billion for the North East to extend the Tyne & Metro to Sunderland via Washington, £1 billion for Tees Valley to pay for platform extensions at Middlesborough and other upgrades, £2.4 billion for the West Midlands for another tramway extension, £2 billion for the East Midlands to improve links between Nottingham and Derby, and £800 million for the West of England Combined Authority, which covers Bristol and surrounding areas, to provide more frequent trains for a new estate on the site of the former Filton airfield in South Gloucestershire and also to lay the foundations for a new mass transit scheme, which could involve trams. The expected announcement will have come a week before the government’s spending review next week, which decides the budgets for each department. Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

The Office of Rail and Road says improvements are needed to revenue protection, making it more consistent, fairer and effective. There have been many reports of heavy-handed incidents. For example, a young passenger accidentally chose the wrong railcard when buying a ticket, and although the discount was the same and she could produce her railcard, she was penalised by a revenue protection inspector for her error. A detailed review commissioned by the government has revealed the flaws in the current system, which the ORR says is not working in the interests of passengers, operators or taxpayers. Research for the report found that there is ‘significant inconsistency’ in revenue protection methods, and that passengers are treated very differently by various operators. One major problem is that passengers can be confused by the complexity of the rules, while many do not understand their rights if they are accused of fraud. The reforms set out in the report include making buying the right ticket simpler and easier, with much more clarity about restrictions, the use of railcards and which routes are permitted. Operators are also being told that the rules should be consistent everywhere on National Rail, and that when passengers are accused of irregular travel they should be treated consistently, with revenue inspectors concentrating on those cases where there is evidence of an intention to avoid paying the right fare rather than an innocent mistake. Operators are also being urged to introduce greater consistency and fairness in the use of prosecutions. The transport secretary and Department for Transport will now consider the recommendations. The ORR’s director of strategy, policy and reform Stephanie Tobyn said: ‘Effective revenue protection is essential for a sustainable railway, but it must be fair and proportionate for passengers. Our recommendations aim to protect both industry revenue and support passenger confidence. ‘Our evidence shows a system that has evolved over time where the legal framework and enforcement processes are increasingly complex and appear weighted towards industry, leaving some passengers who make innocent errors vulnerable to disproportionate outcomes. But meanwhile, fare evasion remains a significant problem, and rigorous action should be taken against those who intentionally seek to defraud the railway.’ Rail minister Lord Hendy said: ‘This report shows that decades of failed privatisation have created a mess of deep-rooted issues across our railways, which have been left unchallenged and are now causing chaos and frustration for passengers. ‘Through the creation of Great British Railways, we’re bringing operators together to establish oversight and better standardise practices, putting an end to inconsistent prosecutions and making sure passengers are treated fairly. ‘Deliberate fare-dodging costs the taxpayer up to £400 million annually, but ham-fisted prosecutions that punish people who have made an innocent mistake is not the way to do this. We will look at this report in detail and set out what we’ll be doing to address the issues raised in due course.’ The Rail Delivery Group, which represents operators, said: ‘We welcome the ORR’s sensible recommendations to standardise revenue-protection practices, remove complexity and improve transparency for customers. The rail industry will work on implementing the recommendations in line with our plans to create a simpler, better-value fares system. ‘Fare evasion remains a significant challenge for the industry, costing the railway hundreds of millions of pounds each year. That’s money that can’t be used to improve services, which increases the burden on customers and taxpayers. So we need to strike the right balance addressing genuine, honest mistakes made by customers and taking firm action against those who deliberately and persistently seek to exploit the system. ‘The rail industry is taking concrete steps to simplify fares, ticketing and retail which will lay the foundation for GBR to adopt and build upon, ensuring revenue-protection practices are proportionate, transparent, and customer-focused.’ Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

Alstom has signed a contract worth £50 million with FirstGroup and Eversholt Rail to refurbish and maintain five 6-car Class 222 Meridian trains which will be used next year on FirstGroup’s new open access service between London Euston and Stirling. The contract has two components. One, worth 10 million pounds, is for the refurbishment of the 222s, which were built by Bombardier and entered service with the Midland Mainline franchise in 2004. The other part, worth 40 million pounds, is for maintenance of the fleet for five years from 2026. The work will be carried out at Alstom’s Central Rivers depot in Burton upon Trent, where the similar Class 220 and 221 Voyagers are maintained. The depot was acquired by Alstom when it took over Bombardier in 2021. The refurbishment, which has been agreed with Eversholt Rail, will be carried out at Alstom’s centre in Widnes. New ergonomically designed seating will be fitted, along with upgraded Wi-Fi and Intelligent Engine Start-Stop technology, which automatically shuts down and restarts the engines when the train is stationary, saving fuel and emissions. The five trains will also receive a full repaint in FirstGroup’s blue Lumo livery. Peter Broadley, who is commercial director UK and Ireland at Alstom, said: ‘This partnership marks a significant milestone in our commitment to delivering high-performance, customer-focused rail services across the UK. By combining Alstom’s deep technical expertise with the operational excellence of FirstGroup and Eversholt Rail, we’re ensuring that fare-paying passengers benefit from a modern, reliable and comfortable travel experience between Stirling and London. The investment in both refurbishment and long-term support reflects our shared ambition to drive innovation and sustainability in rail transport,’ FirstGroup chief executive Graham Sutherland said: ‘We are pleased to work with Eversholt Rail and Alstom on the rolling stock element of our new service between London and Stirling. This new route is another important step towards rolling out Lumo as a nationwide operator and growing our open access capacity, a key priority for FirstGroup. Our investment and capabilities in open access rail have delivered reliable, value for money services, grown rail demand and helped to spur economic growth and connect communities. We look forward to doing the same on our new services.’ Do you have a comment? Please click here  to send an email to Platform at Railnews. Moderated comments will be published on this site, and may also be used in the next print edition.

 An Oxfordshire MP is presenting a petition to Parliament today which opposes the closure of a level crossing in Bicester. The crossing is on the London side of Bicester Village station, on the B4100 London Road. The B4100 is a major route for traffic in Bicester, and there are calls for an underpass instead. At the moment the trains using the crossing are those between Oxford and London Marylebone, but the number of trains will increase significantly later this year when East West Rail trains from Oxford start running to Bletchley and Milton Keynes Central. In the years ahead, EWR will be extended to Bedford over the existing Marston Vale Line, and then on to Cambridge when a new line has been built, further increasing the number of trains through Bicester Village. East West Rail has suggested a footbridge in London Road for pedestrians and cyclists, but motorists would have to find another route. The nearest bridge over the line is on the A41, which is the other side of Bicester Village station, but this is already congested in peak hours. Bicester and Woodstock MP Calum Miller launched the petition, which has gathered more than 4,000 signatures. He had previously written to Chancellor Rachel Reeves last October, saying: ‘There is support for the new rail line but also a belief that its opening should not unfairly affect one town. They do not want to see Bicester cut in two.’ EWR said: ‘We welcome the public's continued interest in this important issue and continue to assess all the potential solutions for the London Road level crossing. ‘Whilst this work is being carried out we are working closely with our local stakeholders, including Calum Miller MP and the local councils.’ Do you have a comment? Please click here  to send an email to Platform at Railnews.  Moderated comments will be published on this site, and may also be used in the next print edition.